{"title":"Do notifications affect households’ willingness to pay to avoid power outages? Evidence from an experimental stated-preference survey in California","authors":"Will Gorman , Duncan Callaway","doi":"10.1016/j.tej.2024.107385","DOIUrl":null,"url":null,"abstract":"<div><p>How much should electric utilities pay to maintain a reliable electricity system? This paper describes an open-ended stated-preference experiment that generates estimates for how advanced notification impacts household willingness-to-pay (WTP) to avoid outages. We find positive and statistically significant WTP to avoid power outages of $10/kWh, consistent with the expectation that outages are costly to the residential sector. We find notification reduces the WTP, but the effects are not statistically significant. There is limited evidence that these results vary by income and wealth levels. Back-up power ownership is positively correlated with respondents’ WTP to avoid outages.</p></div>","PeriodicalId":35642,"journal":{"name":"Electricity Journal","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2024-03-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S1040619024000204/pdfft?md5=8482c853111a9ba69eac46acee0e7948&pid=1-s2.0-S1040619024000204-main.pdf","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Electricity Journal","FirstCategoryId":"1085","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1040619024000204","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"Social Sciences","Score":null,"Total":0}
引用次数: 0
Abstract
How much should electric utilities pay to maintain a reliable electricity system? This paper describes an open-ended stated-preference experiment that generates estimates for how advanced notification impacts household willingness-to-pay (WTP) to avoid outages. We find positive and statistically significant WTP to avoid power outages of $10/kWh, consistent with the expectation that outages are costly to the residential sector. We find notification reduces the WTP, but the effects are not statistically significant. There is limited evidence that these results vary by income and wealth levels. Back-up power ownership is positively correlated with respondents’ WTP to avoid outages.
Electricity JournalBusiness, Management and Accounting-Business and International Management
CiteScore
5.80
自引率
0.00%
发文量
95
审稿时长
31 days
期刊介绍：
The Electricity Journal is the leading journal in electric power policy. The journal deals primarily with fuel diversity and the energy mix needed for optimal energy market performance, and therefore covers the full spectrum of energy, from coal, nuclear, natural gas and oil, to renewable energy sources including hydro, solar, geothermal and wind power. Recently, the journal has been publishing in emerging areas including energy storage, microgrid strategies, dynamic pricing, cyber security, climate change, cap and trade, distributed generation, net metering, transmission and generation market dynamics. The Electricity Journal aims to bring together the most thoughtful and influential thinkers globally from across industry, practitioners, government, policymakers and academia. The Editorial Advisory Board is comprised of electric industry thought leaders who have served as regulators, consultants, litigators, and market advocates. Their collective experience helps ensure that the most relevant and thought-provoking issues are presented to our readers, and helps navigate the emerging shape and design of the electricity/energy industry.
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